Citizens Reiterates Market Outperform on Salesforce (CRM) as Agentforce Gains Traction

Salesforce, Inc. (NYSE:CRM) is one of the Buzzing AI Stocks on Wall Street.On January 27, Citizens analyst Patrick Walravens reiterated a Market Outperform rating on the stock with a $405.00 price target. The firm cited strong performance of the company’s AI-powered Agentforce behind the rating affirmation.

“While Salesforce’s quarter ends on January 31st and we continue our due diligence process, we view Salesforce as an attractive opportunity for capital appreciation here for several reasons.”

Citizens noted how Agentforce continues to gain traction, with the business crossing $500 million in ARR in Q3 and increasing a whopping 330% year-over-year.

While Agentforce has been driving Salesforce’s robust execution, an even more important factor that the firm has noted is seeing existing Agentforce customers coming back to “fill the tank”, which is a reflection of customer consumption.

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The firm also highlighted Salesforce’s ability to deliver Rule of 40-plus performance, which is supported by steady revenue growth and robust non-GAAP operating margins. The firm’s own checks reflect robust demand and pipeline with more enterprise use cases like Olive the AI Sous Chef for Williams Sonoma and like Pepsi.

These use cases are demonstrating massive efficiencies, in the 25-30% range. The firm further added that it likes the current management setup.

“We like the current management lineup, with Mr. Benioff’s leadership, CRO Miguel Milano’s excitement, and a higher level of operational discipline from Chief Operating and Financial Officer Robin Washington.”

Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.

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Disclosure: None.